Quick Overview of FedNow, Hedera Blockchain, and Dropp

Janak9955

"Quick Overview of FedNow, Hedera Blockchain, and Dropp"

**FedNow:**
FedNow is a public payment infrastructure introduced by the Federal Reserve to ensure that the U.S. payment system remains up-to-date and meets the demands of real-time payments in the modern economy. It can be compared to China's real-time payment clearing system (CNAPS) and is a new service in the U.S. to meet the needs of a modern payment system, providing real-time payment services for faster and more efficient fund transfers. Some key points about FedNow include:

- Real-time Payments: FedNow allows for real-time fund transfers, meaning payments are almost instant with no delay.
- 24/7/365 Service: FedNow will offer services 24/7/365, allowing consumers and businesses to send and receive funds at any time.
- Support from the U.S. Federal Reserve System: Being a service provided by the Federal Reserve System, FedNow will benefit from the strong support of this system, enhancing its reliability and credibility in the market.
- Increased Payment Efficiency: Real-time payments can enhance payment efficiency between consumers and businesses, potentially stimulating economic activities.
- Competition and Innovation: As a new payment platform, FedNow may encourage competition and innovation in the payment sector.

**Hedera:**
Hedera Hashgraph (Hedera) is a blockchain solution designed for high security, high performance, and decentralization. Unlike other blockchains, Hedera Hashgraph uses the "Hashgraph" consensus algorithm to provide faster transaction speeds and lower costs while maintaining the decentralization of the network. Hashgraph is an asynchronous Byzantine Fault Tolerance (ABFT) consensus algorithm that achieves high transaction throughput and security without the need for mining or extensive computational resources.

Hedera offers high throughput, low latency, decentralization, security, and compliance. It is suitable for scenarios that require quick confirmation of transactions, providing identity verification and tracking features, supporting smart contracts, and issuing stablecoins, making it applicable in finance, supply chain, and other domains.

**Dropp:**
Due to the relatively outdated payment infrastructure in the U.S., small-value payments, although in demand, often incur high costs. Dropp aims to develop a method for small-value payments, and the high performance, security, stability, and low cost of Hedera support Dropp's small-value payment products. This is also why Dropp chose Hedera as the underlying blockchain.

Low latency and high throughput are crucial for small-value payments, requiring a more efficient model to achieve small-value transactions. The cost of transactions using stablecoins and the HBAR token in Hedera is expected to be $0.001. Additionally, Hedera's blockchain throughput exceeds 10k/s, settling transactions within 3-5 seconds.

With the use of small-value payments, merchants can adopt fee structures beyond subscriptions and advertising. Dropp allows for higher-frequency transactions, such as pay-as-you-go and micro-subscriptions. Moreover, Dropp includes a built-in "tip fee" that allows users to earn fees by recommending others to use Dropp, contributing to Dropp's user growth.

Jafar224

This is also something worth looking into.

Isha000

For things that are not understood, it's always beneficial to quickly seek clarification.